Singapore's plan to raise retirement and re-employment age sparks debate

In six years’ time, Singapore is set to shelter one in four citizens aged 65 and older, with the majority of them expressing a desire to remain in the workforce.

Following the previous hike in retirement and re-employment ages to 63 and 68, respectively, in 2022, Singapore has announced its plan to further elevate these thresholds to 64 and 69, respectively, in 2026. The goal is set 65 as the threshold for retirement and 70 for re-employment by 2030.

Last year, over 90% of senior workers who were eligible and wished to continue working were offered re-employment opportunities. This measure represents a step forward in Singapore’s pursuit of broader workplace inclusivity.

“Raising the retirement and re-employment ages would create more opportunities for our seniors to participate more and for longer in the labour market. This also enables businesses to tap into a wider workforce,” Ang Tze Phern, partner for the Employment Group at Rajah & Tann, told the Singapore Business Review.

In taking this course of action, the government needs to consider four key factors, said Ang: life and healthy years expectancy; timing and pace; government support; and terms of re-employment.